Bill Overview
Title: Ending Corporate Greed Act
Description: This bill imposes a tax through 2024 on certain corporations (corporations other than regulated investment companies, real estate investment trusts, or S corporations) that have average annual gross receipts for a three-year period of at least $500 million. The tax is 95% of what are deemed excess profits for a taxable year.
Sponsors: Rep. Bowman, Jamaal [D-NY-16]
Target Audience
Population: People impacted by the taxation of large corporations
Estimated Size: 200000000
- The bill targets large corporations with high annual gross receipts, specifically those making an average of $500 million or more.
- Corporations that fall under this category are multinational and have a global footprint, influencing a global customer base, workforce, and investor pool.
- Investors in these corporations, either directly or through mutual funds, could be affected by potential changes in share value and company profitability.
- Employees working in these corporations, including those in the US and globally, could experience changes in job security, wages, or benefits depending on how corporations choose to manage the financial impacts of the tax.
- Customers of the corporations may also be indirectly impacted as corporations could adjust prices of goods and services to compensate for the tax.
- Global markets could experience fluctuations as corporations adjust fiscal strategies to cope with the new tax.
Reasoning
- The policy mainly impacts large corporations making over $500 million in annual gross receipts. It is likely to affect company profitability, which may extend to employees, shareholders, and possibly consumers if companies pass these costs onto them.
- The aim of the policy is to curb excess corporate profits deemed as 'greed' by imposing a substantial tax. However, the direct impact on individuals might vary depending on their relationship with these large corporations, whether as employees, consumers, or investors.
- Considering the budget constraints and the scale of target corporations, the policy's impact would trickle down through corporate retrenchments, potential price hikes, or shifts in market conditions.
Simulated Interviews
Software Engineer (San Francisco, CA)
Age: 35 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- I worry that my company may cut jobs to maintain profit margins.
- The cost of living here is already high, and any job uncertainty is concerning.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Financial Analyst (Boston, MA)
Age: 42 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- I'm concerned about potential declines in mutual fund values that include stocks of these corporations.
- This policy could affect my retirement savings.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 5 | 5 |
| Year 5 | 6 | 6 |
| Year 10 | 7 | 7 |
| Year 20 | 8 | 8 |
Freelance Journalist (Austin, TX)
Age: 29 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- This could herald greater accountability for corporate behaviors.
- I'm curious to see if prices for tech gadgets rise, affecting my budget.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 8 |
| Year 20 | 9 | 8 |
Public School Teacher (Chicago, IL)
Age: 50 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 2.0 years
Commonness: 4/20
Statement of Opinion:
- It's about time corporations pay their fair share.
- I hope this doesn't result in increased prices on household goods.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 9 |
College Student (New York, NY)
Age: 22 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- I hope my internship isn't axed if they cut costs.
- I am unsure of the broader economic repercussions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 8 | 8 |
Retail Store Manager (Seattle, WA)
Age: 48 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 8.0 years
Commonness: 6/20
Statement of Opinion:
- Concerned about potential price hikes for stock sourced from such corporations.
- Uncertain if end-consumer prices will go up.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Small Business Owner (Dallas, TX)
Age: 34 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 2/20
Statement of Opinion:
- Might level the playing field against large corporations.
- Hopes this results in more local business support.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 9 | 6 |
Marketing Specialist (Miami, FL)
Age: 39 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- Worried about corporate budget cuts affecting job stability.
- Interested in how this impacts the global market strategies.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 7 |
| Year 20 | 8 | 7 |
Retiree (Los Angeles, CA)
Age: 57 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 9/20
Statement of Opinion:
- If dividends are impacted, my income could decline.
- Overall concerned but hopeful for broader economic fairness.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 8 |
| Year 20 | 8 | 9 |
Healthcare Professional (Salt Lake City, UT)
Age: 46 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 8/20
Statement of Opinion:
- Doubt this will directly affect healthcare services and prices.
- More concerned about potential indirect impacts in the economy.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Cost Estimates
Year 1: $6000000000 (Low: $5000000000, High: $7000000000)
Year 2: $6000000000 (Low: $5000000000, High: $7000000000)
Year 3: $6000000000 (Low: $5000000000, High: $7000000000)
Year 5: $0 (Low: $0, High: $0)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The definition of 'excess profits' could lead to substantial administrative and legal challenges.
- Corporations may adjust their financial strategies significantly to mitigate tax liabilities, affecting financial statements and operations.
- Potential impacts on employment and prices of goods and services, especially if companies shift costs onto consumers or reduce workforce investments.
- International reactions may arise since multinational corporations are involved.